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Businesses Show Confidence in UK Economy

56% of businesses are reportedly feeling confident about the UK economy in 2011

The Investec Entrepreneur Confidence Index shows that 56% of respondents believe the UK economy will improve over the next 12 months. The same amount also believe that the state of the economy will represent new opportunities for them, while just 14% feel threatened by it.

According to the results, 91% expect increased profitability from their businesses, and 44% say that it is very likely that they will launch new ventures in 2011.

Regarding the impact of government spending cuts, just 27% of respondents see this as a threat to their businesses.

“The overall findings from our Index are positive, and show a growing level of confidence in the UK economy from some of our leading entrepreneurs,” commented Ed Cottrell from Investec Specialist Private Bank, according to My Business.

Among the more negative responses were access to finance, of which 56% of respondents felt concern, and 59% thought that the current UK tax environment was not conducive to starting a new business.

Commenting on these concerns, Mr Cottrell added: “There are still a few issues that need to be addressed if they are to receive the level of support they need to meet their business aspirations. Clearly access to capital remains a concern for them, and the tax and regulatory environment is still not seen as being attractive for launching new ventures.”